Do you use 0.0671/2, OR, ((1.0671^(0.5) - 1) for the rate used in the formula ? And why ?

Most importantly, please explain the reasoning to the above question, and make sure your answer/choice leads to Z(0, 1.5) = 0.0679.

Thank you for your time and help.

A12. You observe the yields of the following government bonds (issued by the same government): Bond Par Time to Maturity (Years) 0.5 A B D Coupon Rate (%) 0 0 6 Yield to Maturity (%) 4.08 4.12 6.71 7.45 $100 $100 $100 $100 1.5 2 8 The coupon is paid semi-annually. What are the zero rates, 20.1.5 and 20,2? a) 20,15 = 6.79% and 20.2 = 7.85% b) 20,1.5 = 6.52% and 20.2 = 7.85% c) 20,1.5 = 6.79% and 20.2 = 8.05% d) 20.1.5 = 5.50% and 20.2 = 8.05% e) None of the above